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INTRODUCTION TO CORPORATE

INFORMATION SYSTEMSIS524

BY

CHANDRA S. AMARAVADI

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INTRODUCTION (PART I) Definition of Corporate Systems Types of IS & Evolution Roles of IS Characteristics

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DEFINITION OF CORPORATE INFORMATION SYSTEMS

Corporate Information Systems:A collection of systems designed to fulfill the information/information processing needs of an organization.

Information processing: collect, store, process, disseminate

ORGANIZATIONSYSTEM

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CUSTOMER

PRODUCTION

INFORMATION PROCESSING IN ORGANIZATIONS

orders

order fulfillment

ACCOUNTING/FINANCE

rawmaterials

SUPPLIERS

SALES/MARKETING INVENTORY

availability

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THE EVOLUTION OF INFORMATIONSYSTEMS

Transaction processingReporting systems

Database management systemsDecision supportOffice information systems

Database systemsAI based systemsExecutive information systemsStrategic systems

Enterprise information systemsE-Commerce systemsKnowledge Management systemsBI systems (EIS)

1950’s

1970’s

1980’s

1990’s

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THE EVOLUTION OF INFORMATIONSYSTEMS..1950’s 1960’s 1970’s 1980’s

TP Systems

1990’s-2000’s

Reporting Systems

DatabaseSystems

Enterprise Systems

ExpertSystems

DSS Exec. info.Systems

BI Systems

E-commerce Systems

KMSystems

OIS

introduced because of problems with reporting

integrated

converted

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AN OVERVIEW OF THE DIFFERENTINFORMATION SYSTEMSTransaction processing systems: process business transactionsReporting systems: summarize transaction informationDatabase management systems: systems to manage informationDecision support systems: support analysis of data to aid in d.m.Executive information systems: systems to support executive d.m.BI: systems to provide execs with business intelligence (same as EIS)Office information systems: provide support to office workers (OIS)AI & expert systems: use artificial intelligence to duplicate human activity (in organizations).Strategic systems:systems which support the strategy of the organization and improve competitive advantage.Enterprise information systems: systems which support all functional areas, from marketing to production. E-commerce systems: systems for browsing, ordering, payment etc.

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ACRONYMS

AI – Artificial IntelligenceTP – Transaction Processing DSS – Decision Support SystemsEIS -- Executive Information SystemsBI – Business IntelligenceES -- Expert SystemsERP – Enterprise Resource Planning (same as Enterprise Systems)KM – Knowledge management SystemsMSS – Management Support SystemsOIS -- Office Information Systems

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ROLES OF IS

POS – point of sale; dm – decision making

Support Operations example POS, ATM

Provide information/knowledgeexample KM systems

Support decision makingexample DSS

Support organization work (other than d.m)example KM system (same as above)

Support strategy, organizational design/redesign

example conferencing systems

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CLASSIFICATION OF CORPORATESYSTEMS

BI – Business Intelligence; DSS – Decision Support Systems; EIS – Executive Information Systems; ERP – Enterprise resource planning; GDSS – Group Decision Support Systems; KM – Knowledge Management; TP – Transaction processing;

Type of Information System – Systems that:

Examples

Support operations TP, ERP, E-Commerce

Provide information/knowledge DB/reporting, BI, KM

Support decision making DSS, BI, GDSS

Support organizational work (otherthan decision making)

KM, Expert Systems, OIS

Strategic and organizational (org. design) Workflow systems, strategic systems

Artificial Intelligence

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CHARACTERISTICS OF IS

Used in all organizations Majority of applications are operational systems Rest are DSS etc. Most IS have database as a back end Type of users depend on type of system

TP systems are being phased out (legacy systems) AI is becoming part of every other system DSS, BI, OIS customized from generic software

Note: GL stands for Generation Language

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FOR DISCUSSION

IT consists of information systems: T/F? DSS are most common IS: T/F? E-commerce systems are operational systems? Office Systems support decision making: T/F? What type of systems supply information? DSS evolved from EIS: T/F? A collection of systems to fulfill information processing needs is called __________ Following chart shows a “gas tax map” of the U.S. It illustrates an example of a display in a (an) __________ system.

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Perspectives on information systems Role of information systems IS strategy Development of IS

INTRODUCTION (PART II)

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DEFINING INFORMATION SYSTEMS: PERSPECTIVES

Systems, STS, Work System, Strategic Systems

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Any set of related elements (which are under consideration) working together towards the common purpose of transforming inputs into outputs Examples: transportation network, education, building...

In the IS context: a system is any part (or whole) of the organization which satisfies the definition above

THE SYSTEM CONCEPT

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SYSTEM CHARACTERISTICS

boundaries inputs, processes & outputs subsystems life cycle

Systems have characteristics:

The systems concept is used to: understand systems analyze systems

ProcessesInputs Outputs

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SYSTEMS PERSPECTIVE

How can we view a harbor as a system? A bank?

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INFORMATION SYSTEMS FROM SYSTEMSPERSPECTIVE

data inputs/outputs

Outputs:reports/Screens/ files

BUSINESSPROCESSING

Inputs:screens/files

The systems perspective provides a template for studying information systems.

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THE STS APPROACH Socio-technical system: A system based on reciprocal inter-relationships between humans and machines.

To be successful, any IS implementation must consider the impact on work and power relationships.

Org consists of systems. What systems? IS implementations can cause disruptions to ???? when implementing IS need to consider ??? any definition of a system should include ______ system systems should fit workplace rather than vice versa

Organization

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‘IS’ FROM STS PERSPECTIVE

ProcessesInputs Outputs

Information System

Above is a model of information systems based on STS.

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THE WORK SYSTEM PERSPECTIVE

“Custo-mers”

“Products and Services”

Business Process

Participants

Context IT Resources

Information Technology

Information SystemAnother perspective of an information system.

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THE WORK SYSTEM PERSPECTIVE Customers – beneficiaries of the IS i.e. users and their management. Products/services – the physical products/services provided by the IS. Processes – the steps performed within the IS e.g. taking orders. Participants – the people who perform the steps in the processes. Information – information used to perform the work. Technology – hardware, software etc. Context – the organizational, competitive, technical and regulatory realm within which the system operates IT Resources – refers to the IT department and leadership

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THE STRATEGIC SYSTEM PERSPECTIVE

IS as a competitive weapon Started with classic cases of SABRE & AHS

SABRE -- reservation system of AA AHS (BAXTER) -- system now classified as SCM.

IS should support org. strategies

Note: AA – American Airlines; AHS – American Hospital Supply, now Baxter

AHSHOSPITAL

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DISCUSSIONHow do we view an ERP system from the system’s perspective?How do you compare system’s with STS?When does the STS perspective come into play?How is it applied? How do you compare STS with Work System perspective?Which is the most comprehensive perspective? Which perspective is applicable if Merck wants to use IT for

its drug delivery process to get drugs faster to market than competitors? Why?

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IS STRATEGY & IMPACTS

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IS Strategy is to support corporate strategy e.g. use CRM systems to monitor customers e.g. use robots to cut mfg. costs

IS implementations can have strategic impacts Such systems are called strategic systems Model of IT/IS impacts can be used to

predict impacts identify IS that can cause them.

IS STRATEGY & IMPACTSIS has many different roles most important is strategic

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Infrastructure Leadership Personnel

InformationSystems

Improvemgmt. proc.

Improveproduct/Svc.

Improveadmin. proc.

COSTS, FIRM SIZE, CUST. BASE ETC.

GENERAL MODEL OF IT/IS IMPACTS

Improveoperations

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GENERAL MODEL OF IT IMPACTSIT could be utilized to improve management, administrativeand manufacturing processes or it could be used to impactthe product itself or the “reach” of the organization.

Improve operations – use IT to support the firm’s operations Improve product – primarily where information-based product/ service is possible, e.g. on-line car-service records. Improve management processes -- through “better information” to management via EIS, data mining etc. Improve administrative processes – through streamlining them via customized applications or through workflow automation (OIS).

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IS DEVELOPMENT

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IS development is an organized process for developing an information system. Consists of many stages and many actors.

INFORMATION SYSTEMS DEVELOPMENT

IS development refers to software development

Stages in the development cycle (SDLC) are: planning, analysis, design, implementation, maintenance.

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THE IS DEVELOPMENT PROCESS

Developers

Users

BusinessAnalysts

ProjectManager (PM)

System

specs code

Project plan

Sr. Analyst or PM

design

Planning/feasibility

Analysis Design Implementation

Note: actors are shown in black, outputs in blue and stages in green

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DISCUSSION

How can we analyze ‘order processing’ in an org.? Who are “customers”? Company uses IT to support drug development process. Company uses web technologies to develop an online store What happens to an organization if an ERP system is

implemented? What activity/activities take place when specs are received? What is the role of a developer?

Identify the framework that answers these questions and then answer each of the following questions:

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WHAT DOES THIS ILLUSTRATE?

Management

Organization(design)

informationD

ecisions.D

ecisions.

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THE END